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USA, eight countries in Europe, three locations in Australia, two in New Zealand and one each in Hong Kong, Malaysia, Singapore, and Japan.
The USA is a strategic market for HCL Tech, and it contributes approximately 65 per cent to the company's revenues.The company's key focus areas within the USA include aerospace, automotive, banking, finance, insurance, life sciences, retail, and telecommunications.
HCL Technologies Limited in the United States of America
Mode of Operation
HCL Tech entered the US market in 1985 and established its headquarters in Sunnyvale,
California. Its fully-owned subsidiary, HCL America, operates through 18 offices in nine locations across the USA.
Overview
HCL America offers consulting and IT services through its offices in nine strategically located hubs across America. It has offices in Washington, Michigan, Connecticut, Illinois, New Jersey, Colorado,Virginia,Texas and California.The company also has three subsidiaries - HCL EAI Services, HCL Mass and HCL Jones Tech, Inc. HCL America caters to varied business needs in the aerospace, automotive, banking, finance, insurance, life sciences, retail, and telecom domains.The company offers specialised services in these verticals, with applications such as customer relationship management (CRM), enterprise
Company Background
HCL Technologies Limited (HCL Tech) is a part of the HCL Group, which has significant global presence. HCL Infosystems is a three-decade old enterprise, while HCL Tech is a relatively young enterprise and it has achieved substantial success in a short span of time. After its IPO in 1999, the last seven years have seen it emerging as one of the top-five Indian IT service companies.The HCL Group has banked on three qualities - invention, reinvention, and creativity - to thrive in the dynamic IT industry.
HCL Tech is among the leading global IT services companies. It provides IT services like software-led IT solutions, BPO and remote infrastructure management services.The company leverages an extensive offshore infrastructure and its global network of 26 locations in 16 countries to deliver solutions across select verticals, which include banking, insurance, retail, aerospace, hi-tech, automotive, semiconductors, telecom and life sciences. For the quarter ending September 30, 2006, HCL Technologies, along with its subsidiaries, registered revenues of approximately US$ 1.058 billion. As on September 30, 2006, the company had an employee strength of 36,452 professionals.
Global Footprint
of HCL Technologies Limited
HCL Tech is present in 16 countries across the globe, primarily in the USA, Europe, Asia Pacific and Japan. It operates through nine locations in the
HCL
TECHNOLOGIES LIMITED
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47 contributor to the company's revenue from the US.
It has gained substantial expertise in the vertical.
Thus, the company is the preferred choice for Hi-tech companies.
Global Strategy
To sustain growth, the company has established subsidiaries in Europe, the UK, Japan, Australia, etc., which is enabling it to penetrate the global
markets.The company believes in the 'think global and act local' philosophy. It has followed a similar approach in the US. Its US operations are
supported by a rich pool of technology consultants having an understanding of clients' businesses and their functional requirements.
Future Plans
HCL Tech plans to tap the IT infrastructure segment, which is expected to generate higher margins in the near future in the US.The company is also evaluating plans to balance its geographical portfolio for entering other high-margin markets.
HCL Tech also plans to focus on multi-service contracts, which would enhance its relationships with key clients. In addition, the company plans to focus on marketing and public relations to increase its market visibility.
Additionally, HCL Tech also plans to target medium- sized companies. . HCL Tech plans to capture this untapped market and offer transformational outsourcing services to its clients.
resource planning (ERP), IT infrastructure and business process outsourcing (BPO). It has approximately 2000 employees in America.
Revenues from HCL America grew at a CAGR of 30.1 per cent during 2003-2006. As on September 30, 2006, the company generated US$ 628 million in revenues from its North American operations.
Success Factors
Blended Solutions
With synergies between the company's operations, HCL has been able to offer its various services under one umbrella.The company provides support services to clients through offices and support operations in India and the Philippines. Its low-end functions are transferred to back offices in India, thereby freeing its resources for high-end functions.
Vertical Strategy
HCL Tech has adopted a strategy of offering services in select verticals where it has substantial expertise.The company offers IT consulting and services in varied sectors such as aerospace, Hi-tech, automotive, banking, finance, insurance, life sciences, retail, and telecommunications.
HCL offers specialized services in these verticals, with applications such as customer relationship management (CRM), enterprise resource planning (ERP) IT infrastructure and business process outsourcing (BPO).The Hi-tech vertical is a major
Source: Company Website
Revenues (US$ million) - HCL America (2003-2006)
June 03 June 04 June 05 June 06
0 200 400 600 800
Year 265.8
346.8
452.4
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